Tesla shares are about to get three times less expensive.

The company announced Friday that its board approved a 3-for-1 stock split, its first split since August 2020.The split would need to be approved by shareholders at the company’s annual meeting in August.

Tesla (TSLA) closed Friday at a little over $696 per share. If the split were to happen today, its stock would be worth $232 a share.

Don’t worry, Tesla stockholders (which is pretty much everyone with a retirement account, these days) — your stakes will still be worth the same. You’ll be holding three times more shares when all is said and done.

Companies split their stocks for numerous reasons: Splits can put their stock within the reach of smaller, individual investors. It helps companies gain liquidity and splits can create more demand for a company’s stock.

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